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Appendix 1-1

Appendix 1 - Financial Policies

The City of Brampton is modernizing its corporate policies, procedures and practices and aligning corporate policies with desired

corporate values and culture. The outcomes will:

Provide critical support for the City’s ongoing transformation, better positioning Brampton as a global leader

Facilitate organizational agility to act on new and innovative service delivery models within a framework of compensating controls

Build trust and confidence between Council, staff and the public, resulting in better services to the public

Reduce organizational risk, drive more integrated business decision-making, ensure corporate-wide consistency with clear

accountabilities, and provide public transparency.

A multi-phased action plan for a new City of Brampton policy governance framework (see App 1-2) and program was approved by

Council in October, 2017. The program is based on the four pillars outlined below, and will include reviewing policies based on a

schedule which prioritizes those requiring most significant revision.

Appendix 1-2


Appendix 1-3


Controllership (#13.0.1) November 28, 2007

Budget Control (#13.2.0) September 16, 2003

Corporate Initiatives Funding (#13.2.2) June 13, 2005

Internal Financing (#13.2.3) September 13, 2004

Lease Financing (#13.2.4) November 28, 2005

Debt Management (#13.2.5) June 19, 2013

To set of the basic principles by which City controllership policies, by-laws, policies, procedures and practices shall be developed to ensure that the policy statement

can be achieved.

To outline the financial management policies of the City of Brampton related to Current Operating and Capital budget control; to define the roles and responsibilities

related to budget control processes; and to outline the principles governing funding decisions outside of the annual budget process. The principles and practices

described are intended to ensure that the Budgets approved by Council and the priorities reflected therein are implemented as intended by Council; that the budget

management process allow sufficient flexibility to respond to evolving circumstances while keeping Council informed of factors affecting the status of Budgets; and

that resulting changes are subject to approval consistent with legal requirements, Council’s responsibility for budgets, and expenditure authority. This policy does not

address the annual Budget preparation process.

To establish guidelines for the approval of budgets and related expenditures for the Corporate Initiatives Account.

Internal financing may be available to selected acquisitions or capital projects, subject to formal approval by Council in the context of a Capital Budget and a multi-

year Current Budget projection showing the long-term impact of repayment terms. City Council may grant an internal loan to finance selected acquisitions or capital

projects, financed from available internal funds. The financing of the project will be in a manner that does not detract from the overall City’s investment performance

objectives. Internal financing loans will have a specific term, a defined interest rate, and a formal repayment schedule.

To establish a framework and outline requirements for entering into leases of municipal capital facilities, and for reporting such leases to Council as required under

the Municipal Act and Municipal Act, 2001, as amended, and Ontario Regulation 46/94, as amended. Leasing is an important option for local governments. The

choice may be a function of strategic investment or of comparative cost. When entering into a lease arrangement, possible risks need to be assessed.

To outline the methods and principles that the City will use to manage its debt in accordance with best practices of sound financial management.

Appendix 1-4


Expenses - Approval Requirements (#13.3.0) February 9, 2011

Expenses - Business (#13.3.1) February 9, 2011

Expenses - Mileage (#13.3.2) October 16, 2002

Expenses – Petty Cash (#13.3.3) June 1, 2001

Expenses – Professional Memberships (#13.3.4) February 9, 2011

Expenses - Travel (#13.3.5) February 4, 2015

Mayor and Councillors’ Expense (#13.3.6) February 4, 2015

Remuneration & Expenses Reporting for Elected Officials (#13.3.6.1) June 1, 2014

To ensure expenses incurred are eligible individual travel expenses and sufficient proof is provided.

Section 284 of the Municipal Act requires that the Treasurer of every municipality shall submit to the Council of the Municipality, an itemized statement of the

remuneration and expenses paid to each member of council in respect of his or her services as a member of council, on or before the 31st day of March in each

year.

To ensure only eligible expenses are reimbursed.

City staff authorize expenditures in carrying out their duties and responsibilities as employees of the City of Brampton. To ensure each expenditure claim meets the

appropriate requirements for approval.

City staff incur various business expenses in carrying out the duties and responsibilities of their position. The purpose of this policy is to ensure those expenses

being claimed are eligible according to this policy with sufficient proof of expense being provided. It is also to ensure the validity of each expense according to the

procedure laid out in this policy.

To ensure employees are aware of the per-mileage entitlement.

To ensure petty cash is used appropriately and not to circumvent the use of cheques requisitions.

To ensure only eligible membership fees are paid or reimbursed.

Appendix 1-5


Mayor and Councillors’ Office Technology, Equipment and Furniture (#13.3.6.2) December 1, 2014

Insurance (#13.4.0) March 24, 2003

Care, Custody and Control of City Assets (#13.4.1) April 26, 2007

Inventory Valuation (#13.5.0) November 28, 2007

Investment (#13.6.0) June 22, 2016

Letters Of Credit (#13.7.0) May 26, 2003

Acceptance of only certain types of letters of credit ensures that the interests of the City are protected. This policy identifies:

• the City's requirements for the format of letters of credit;

• the requirements which must be met by the issuing institution;

• acceptable alternatives to a letter of credit; and

• responsibility for administration of letters of credit.

To ensure clear accountabilities and guidelines are in place for the corporate provision, individual purchase and support and maintenance responsibilities for

technology and office equipment and furniture for the Mayor and Councillors.

Acceptance of insurance policies from insurers that meet a specific rating requirement ensures that the interests of the City are protected. This policy identifies the

minimum requirement that an insurer must have before an insurance policy, where the City of Brampton is added as an additional insured, is accepted by the City of

Brampton.

To remind all staff who have in their possession, either on a fulltime basis, or on loan for a short period, City owned/issued assets, (computers, laptops, cell phones,

blackberries, digital cameras, vehicles, equipment, etc.) whether while at work, away from their normal workplace or at their place of residence, of their duties and

responsibilities towards the care, custody and control of these City assets.

To ensure that inventories are valued appropriately and methods used are acceptable for reporting purposes.

To provide investment guidelines which will direct the investment of the City’s funds not immediately required, with the goal of preserving capital, maximizing

investment yields, minimizing investment risk, maintaining liquidity and ensuring compliance with The Municipal Act 2001, Eligible Investments, Regulation 438/97

(amended to O. Reg 373/11).

Appendix 1-6


Purchasing By-Law (#310-2015) March 1, 2016

Purchasing Card (#13.8.1) June 1, 2015

Property Tax Billing and Collection (#13.10.0) June 4, 2014

Tax Policy and Assessment (#13.12.0) June 1, 2007

Tangible Capital Asset Accounting (#13.13.0) December 1, 2012

Tangible Capital Assets Physical Inventory (#13.13.1) December 1, 2012

To promote procurement activities and decisions which are consistent with the strategic objectives of the City provided that the requirements of any applicable

international or inter-provincial trade agreements are not compromised. (By-Law 35-2012)

To establish clear, understandable processes relating to the use and purpose of the City’s P-Card. This policy shall also clearly identify the responsibilities and

procedures to be followed for all aspects relating to the P-Card.

To ensure that municipal tax revenues are collected in a timely and effective manner. To ensure that all taxpayers (customers) are treated fairly and equitably and to

provide staff guidance for decision-making, consistent with the City's strategic plan in Corporate Excellence and continued financial stability.

To ensure that all properties within the City of Brampton are assessed fairly within the legislative framework provided by the provincial government to generate

appropriate tax revenues. To provide guidance for staff in the administration of their responsibilities. To actively monitor the product of the Municipal Property

Assessment Corporation (MPAC) and ensure that municipal interests are achieved.

To prescribe accounting treatment for tangible capital assets to ensure they are recorded accurately and consistently. The key areas in accounting for tangible

capital assets are recognition of the assets, the determination of their carrying amounts, amortization charges and the recognition of any related impairment losses.

To provide guidelines for physical asset verification - used to verify the existence and condition of the City’s Tangible Capital Assets and the accuracy of Tangible

Capital Assets information contained in departmental records and the City’s Corporate Financial System Asset Management Module.

Tangible Capital Assets covered by this Policy include: buildings and building components; furniture, computer and office equipment; infrastructure; land

improvements; vehicles and machinery. Physical asset verification ensures the completeness and correctness of the information recorded in the City’s Corporate

Financial System Asset Management Module.

Appendix 2 - Annual Financial Report, 2016

Appendix 2-1

Financial Report for the Fiscal Year Ended December 31, 2016

Prepared by the Finance Division, Corporate Services Department of the Corpora on of the City of Brampton, Province of Ontario

2016 Financial Report The Corporation of the City of Brampton

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Financial Report Table of Contents

Introduction 3 City of Brampton Corporate Organizational Chart 4 Message from City Treasurer 9 Financial Highlights 11 GFOA Award Financial 12 Consolidated Financial Statements 13 Responsibility for Financial Reporting 14 Auditors’ Report 15 Consolidated Statement of Financial Position 16 Consolidated Statement of Operations and Accumulated Surplus 17 Consolidated Statement of Change in Net Financial Assets 18 Consolidated Statement of Cash Flows 19 Notes to Consolidated Financial Statements 29 Consolidated Schedule of Segment Disclosure Trust Funds 31 Auditors’ Report 32 Statement of Financial Position 33 Statement of Financial Activities and Changes in Fund Balances 34 Notes to Financial Statements Statistical Information 36 Five Year Review Summary 42 Ten Largest Corporate Property Taxpayers in Brampton

The Corporation of the City of Brampton Financial Report 2016

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City of Brampton Corporate Organizational Chart

Mayor and City Council Mayor Linda Jeffrey

Chief Administrative Officer Harry Schlange• City Clerk • Human Resources • Internal Audit • Service Innovation and Corporate Performance • Strategic Communications • Strategic Development

Corporate Services Commissioner Joseph Pittari • By-law Enforcement • Finance • IT • Legal • Purchasing

Community Services Commissioner Al Meneses • Animal Services • Building Design and Construction • Facilities, Operations and Maintencance • Realty Services • Recreation • Service Brampton

Public Works and Engineering Commissioner Joe Pitushka • Capital Works • Development Engineering • Parks • Road Maintenance, Operations and Fleet • Transportation Special Projects

Planning and Development Services Commissioner Heather MacDonald - Interim • Building • Development Services • Policy Planning • Transportation Planning • Urban Design

Economic Development and Culture Director Bob Darling • Cultural Services • Economic Development • Festivals and Special Events •OfficeoftheCentralArea

Fire and Emergency Services Chief Michael Clark

Brampton Transit General Manager Sue Connor


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Consolidated Financial Statements

Management is responsible for the preparation of the City’s consolidatedfinancialstatements.Theseconsolidatedfinancialstatementshavebeenpreparedinaccordancewiththe reporting standards established for municipalities by the Public Sector Accounting Board (PSAB), and included within theCPACanadaAccountingHandbook.WeareconfidentthatcontrolsareinplaceintheCity’saccountingandfinancialreporting systems that ensure accuracy of the consolidated financialstatementsbeingpresented.

The2016consolidatedfinancialstatementshavebeenaudited by KPMG LLP, Chartered Professional Accountants (KPMG) in accordance with Canadian Generally Accepted AuditingStandardsandtheirunqualifiedreportisincludedwiththeconsolidatedfinancialstatements.Theroleofthestatutory auditor is to present an independent opinion on the fairpresentationoftheCity’sfinancialpositionandoperatingresultsascontainedintheFinancialReport,andconfirmthatthestatementsarefreefrommaterialmisstatements.Theauditors are also responsible for advising management and City Council of any control or operational issues that may be identifiedduringtheiraudit.

The auditors have expressed the opinion that the City’s consolidatedfinancialstatementspresentfairly,inallmaterialrespects,thefinancialpositionoftheCorporationoftheCityof Brampton as at December 31, 2016, and comply with PSAB municipalfinancialreportingrequirements.

Similartotheprivatesector,theseconsolidatedfinancialstatements are prepared using the full accrual basis of accounting: revenues are recorded when they are earned andexpensesarerecordeduponreceiptofgoodsorservices.Tangible capital asset reporting – including the City’s investments, consumption (amortization) and contributions by developers – enables all levels of government to track municipalinfrastructureacrossthecountry.

Overview of Economic Climate and Financial Strategies

Brampton continues to prosper, led by sustained economic growth.TheProvinceofOntariohasrecognizedourpotentialas one of the youngest, fastest growing and most diverse citiesinthecountry.OurnewEconomicDevelopmentandCultureofficeisbuildingonahistoryofclientserviceandisnowpositioningBramptonasasignificantcompetitorto otherCanadianandglobalcities.

I am pleased to present the City of Brampton’s consolidated financialstatementsforthe2016fiscalyear.

2016wasayearofsignificantchangeattheCity.We embarked on a new vision for a Future-Ready Brampton and will continue to build on our new foundation to provide the bestservicestoourresidentsandbusinessesmovingforward.

As one of Canada’s fastest-growing cities, Brampton continues to face the challenge of balancing growth with expectations.Weremaincommittedtomanaginggrowthwhileremainingfiscallyresponsible.

Ourcontinuedstrongfinancialmanagement,recentchangesto the organization and a forward-thinking view to the future havecollectivelystrengthenedBrampton’sfinancialpositionnowandintothefuture.

Inadditiontokeyfinancialresults,thisreportprovidesanoverviewofthelocaleconomicclimate,financialpolicies and performance related to the delivery of the City’s programsandservices.

Message from the City Treasurer


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Some key economic indicators in Brampton:

• Population increased to 593,638 in 2016 from 580,600 in 2015, and is expected to increase to 900,000 by theyear2041.• Number of households increased to 168,120 in 2016 from 164,680 in 2015, and is projected to be more than200,000by2031.• TheRegionofPeelunemploymentrateincreasedto7.1 percentin2016(6.8percentin2015),reflectingglobal economicpressures.However,itstillremainslowerthan the10-yearaveragefortheregion.• Newbusinessesincreasedby4.8percentfrom2015,and those businesses provided 2,400 additional jobs within thecommunity.• Brampton placed 7th in the country for total construction valuein2016,generating$2billionininvestment.

Brampton City Council is committed to transparency in governmentandengagementwithitscommunity.Councilstrives to balance the expectations of residents for programs and services with the need to insulate taxpayers where possible,toensureongoingvalueformoney.

In addition to responding to the infrastructure needs of a growing community, the City is also committed to maintaining its existing infrastructure base in a state of good repair.In2016,CityCouncilapprovedthe‘CorporateAssetManagement Plan’ which provides a framework for a strategic planformanagingourassetsinaneffectiveandefficientmannerwhilecomplyingwithapplicableregulations.TheCitycontinuestopursuefederalandprovincialfinancialsupportfor infrastructure projects to reduce the property tax burden to the residents, while the Mayor and City Council advocate onbehalfofBrampton.

Financial Management Policies

The City of Brampton has established a number of financialmanagementpoliciesthatprovideaframework fortheCorporation’soverallfiscalplanningandfinancial management.Thisincludesproactivefinancialplanning andfinancialreportingprocesses.

The City of Brampton is in compliance with the reporting guidelines required by the Ministry of Municipal Affairs andHousing.

TheCity’srigorousfinancialreportingonbothoperatingandcapital results exceeds the requirements of both the federal andprovincialgovernments.StaffregularlyprovidefinancialreportstoCityCouncilinvariousforms,includingfinancialstatusreports.Thesereportsarepreparedandsubmittedto City Council, four times per year for operating and two times per year for capital, and clearly compare budgets with results and provide comments on variances from budget and forecasts.Thesecomprehensive,easy-to-readreportsenableCity Council and the public to understand how their tax dollars are spent and how the City has performed againstbudget.

Through its risk management program, the City proactively protectstheCorporation’sassetsagainstfinanciallossesandensurespreservationofpublicservicecapacities.Inaddition,theCitypurchasesinsurancetoensurefinancialprotectionisavailableshouldalargelossoccur.TheCityhascontinuedwith the implementation of an Enterprise Risk Management program.Thisinitiativewillincorporateaconsistent approach to risk into the culture and strategic planning processesoftheCity.

The Government Finance Officers Association of the United States and Canada (the “GFOA”) Award for Financial Reporting

In2016,forthefifteenthconsecutiveyear,theGFOAformallyrecognizedBramptonforitsexcellenceinfinancialreportingwith the “Canadian Award for Financial Reporting” for the City’s2015AnnualReport.

The GFOA established the Canadian Award for Excellence in Financial Reporting Program to encourage Canadian local governments to go beyond the minimum requirement of generally accepted accounting principles to communicate the municipalgovernment’sfinancesinacomprehensivemanner,based on a set of consistent reporting requirements estab-lishedforalllocalgovernment.

The City of Brampton's achievements demonstrated the high standardsinfinancialreportingsupportedbyevidenceoftransparencyandfulldisclosure.



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Other Financial Industry Achievements and Recognition

In 2016, the City continued to make improvements in our overallfinancialmanagementprocessresultinginincreasedtransparency,accountabilityandfiscalresponsibility.Thesuccess of these initiatives has been recognized by several externalagencies.

Standard & Poor’s

Since 2006, Brampton has enjoyed a Standard & Poor’s ‘AAA’creditrating.ThestrengtheningoftheCity’sfinancial policiesanditssolidfinancialpositionisreinforcedbythemaintenance of its AAA stable rating and stable outlook in 2016.ThismakestheCityoneofonlysixmunicipalitiesinCanadatohavethisrating.

Theratingreflects“theCity'sverystrongeconomyand budgetary performance, very low debt burden, and exceptional liquidity” as well as “the "very predictable andwell-balancedlocalgovernmentframework”.

C.D. Howe Institute

In 2016, the City of Brampton has received the highest rank of A- as accorded by CD Howe Institute to any municipality inCanadaforfinancialreporting.Itisoneofonlyfive municipalitiesinthecountrytohavereceivedthisrecognition.

The GFOA Distinguished Budget Presentation Award

The City’s Approved Business Plan and Budget 2016-2018 hasreceived‘TheDistinguishedBudgetPresentationAward’from the GFOA which is the only national awards program in governmentalbudgeting.ThisisthefirstyeartheCityappliedforandreceivedtheawardanditrepresentsasignificantachievement due to the stringent requirements for effective budgetpresentation.

Budget Process

TheCity’sbudgetispreparedbysettingprioritiesthatreflectstrategic objectives and service standards, while balancing theneedforprudentfinancialmanagement.Prioritysettingtakes place at all levels of the organization by departmental staff, senior management, executive leadership and, ultimately,CityCouncil.Throughouttheprocess,public input is taken into account, as expressed through public participation in regular and special open meetings and numerousonlinetools.

Separate Capital and Operating budgets are prepared in parallel, but are closely linked in recognition of the impact thateachhasontheother.

Commencing in 2015, the City adopted full accrual basis (PSAB) budgeting which strengthens the City’s commitment totransparencyinfinancialreporting.ThefullaccrualPSABbased budget methodology does not change how the tax levy is calculated, or how funding decisions are made by City Council.The2016FinancialStatementsreflectsfullaccrualbudgetfiguresforcomparisonpurpose.

Also commencing in 2015, the capital budget methodology changed from full project budgeting to capital contract budgeting.Thismethodologyonlyallowsbudgetingforcontracts (purchase orders) with vendors that are anticipatedtobeissuedinthebudgetyear.Thisaligns annual funding requirements with the City’s capacity to delivercapitalprojects.

Budget submissions are consolidated and supported by the analysisofbudgetdriversandjustificationofallproposednewinitiatives.Seniormanagementandexecutiveleadershipteams then determine a recommended set of objectives andprioritiesforallocationofavailableresources.Theseproposed budgets and priorities are considered by Council in open public meetings, amendments are made as appropriate andbudgetapprovalisgranted.

The capacity to fund, deliver and manage the large quantity of new capital infrastructure needed to accommodate growth continued to be a major consideration in the 2016 budget process.The2016budgetreflectedabalancebetween prioritiesofthecommunityandafiscallyresponsible approachtorunningtheCity.

Key budget objectives included in the 2016 budget were:

• Delivering a shared vision and direction for Brampton’s next phase of growth • Continuing and expanding community engagement• Seeking out national and foreign investment opportunities• Maintaining and developing corporate infrastructure• Ensuring continued value for money in the provision of all City services• Insulating taxpayers to the extent possible



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Audit Committee

The Audit Committee is a Committee of Council comprising fiveCityCouncilmembersappointedbyCouncil.Itprovidesa forum for communication among Council, the external auditor,theinternalauditorandmanagement.TheAuditCommittee facilitates an impartial, objective and indepen-dent review of management practices through internal and externalauditfunctions.

Financial Results

The City of Brampton’s accumulated surplus at the end of 2016was$4.0billion(2015:$4.0billion),ofwhich$3.6billionreflectsinvestmentsintangiblecapitalassets.ThisincreasereflectstheCity’scontinuingcommitmenttoinvestincapitalinfrastructure to support current City services and future growth.

Revenues

Revenuestotalled$780millionin2016.Thesourceswere:

• $425 million from property taxes• $167millionfromuserfees,fines,interestincomeandother• $12 million from federal and provincial government grants• $146 million from development levies and other restricted capitalcontributions(i.e.developmentchargesand government transfer payments for restricted purposes being applied to applicable capital works)• $30 million of developer contributed tangible capital assets

Total revenues reported in 2016 were $51 million lower than 2015.Majorfactorscontributingtothisdecreaseinclude:

• a $46 million decrease in developer contributed tangible capital assets due to lower number of subdivision agreements being executed by the developers • a $37 million decrease in development levies earned and other capital contributions due to the lower development charges receipts

These decreases were partially offset by a $28 million increase in property taxation as a result of assessment growth andbudgetaryincreases.Themajorityofthegrowthisrealized from new construction, particularly residential, and

newplansofsubdivision.Alsocontributingtotheincreaseisthe increased supplementary assessment received from the MunicipalPropertyAssessmentCorporation.

Expenses

The operating expenses totalled $734 million, including:

• General government - $112 million• Protection to persons and property - $101 million• Transportation services - $292 million• Environmental and health services - $18 million• Social and family services - $4 million• Recreation and cultural services - $179 million• Planning and development services - $28 million

Total operating expenses of $734 million (2015: $652 million) increasedby$82million.$6millionreflectsanincreaseinamortization expense, representing the value of tangible capitalassetsthatwasconsumedduringtheyear.Theamortization expense increased due to the impact of the $216 million in new tangible capital assets that were added during 2016.Thisincreaseintangiblecapitalassetsismainlyduetothe infrastructure assets assumed from developers through subdivision agreements, construction of the Williams Parkway Administrative Building Phase 2, Gore Meadows Phase 2, Sandalwood Works Yard expansion, purchase of transit buses androadconstructionactivities.

Amortization expense does not require an outlay of cash and is not directly included in the determination of the annual propertytaxlevy.

The remaining $76 million in increased expenses include:

• One-time payment of $40 million to the Peel Memorial Centre for Integrated Health and Wellness• $4 million increase in post-employment and other liabilities• Operating and maintenance of the City’s growing infrastructure investment as well as robust Transit service• One time costs associated with City transformation costs



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Reserve Funds

The City of Brampton has established a number of reserves and reserve funds to fund long-term liabilities, smooth tax rateincreases,expensefluctuationimpactsandfundcapitalprojects.

As at December 31, 2016, the City of Brampton’s reserves and reserve fund balances totalled $324 million, compared to $289millionin2015.Thesefundsarereportedasacompo-nent of the accumulated surplus (see Note 9 of the consolidat-edfinancialstatements).

Included in the Consolidated Statement of Financial Position are deferred revenues from gas taxes, provincial and federal transfer payments, development charges and other contribu-tionsfromdevelopersforfuturegrowth-relatedcapitalworks.These deferred revenues totalled $323 million as at Decem-ber 31, 2016 as compared to $317 million in 2015, an increase of$6million.

Transfers from reserves and reserve funds are required on an annual basis to fund portions of the City’s operating costs andcapitalexpenditureprogram.Inaddition,someofthesetransfers are directed towards insurance claims, replacement of assets, sick leave programs and Workers’ Safety Insurance payments.

Staff continues to review reserve balances on an ongoing basis to ensure the City is well-positioned to meet its long-termfinancialcommitmentsandtakeadvantageoffinancialopportunitiesthatmayarise.

Final Comments

We have made great strides in our commitment to account-ability,transparency,credibilityandclarityinfinancialreport-ing.Wecontinuetoexplorelong-termstrategiestohelpwithprioritizationanddecision-making.

As a rapidly growing city, Brampton’s ongoing challenge is to balance service delivery, infrastructure building and maintenance,whileremainingfiscallyresponsible.Weareinvesting in our infrastructure priorities to help address the needsofourcommunity–nowandintothefuture.Ouraimistomanagethatfutureinvestmentwithprudentfinancialpolicy, while continuing to provide the best possible service toourresidentsandbusinesses.

Brampton is a strong, inclusive city, with smart, passionate people.Itisoneofthemostdiversecitiesinthecountry.We’re building change in Brampton and we are committed to working as a team to position Brampton as an emergent globalcityofthefuture.

Dave Sutton, City Treasurer

June 13, 2017



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Where does your residential tax dollar go

Education 16.82%

Region of Peel 37.33%

City of Brampton 45.86%

Where does your commercial and industrial

tax dollar go

City of Brampton 29.76%

Region of Peel 24.11%

Education 46.11%

Financial Highlights for the year Ended December 31, 2016


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Consolidated Expenses By Type - 2016

Other0.05%

Salaries, Wages andFringeBenefits 51.70%

Government Transfers5.50%

Rents and Financial Expenses5.50%

Contracted Services13.48%

Materials and Supplies10.02%

Amortization 17.16%

Consolidated Expenses By Service - 2016

Planning and Development3.96%

Protection to Persons and Property 13.69%Recreation and

Culture24.43%

Health, Social and Family0.63%

Environmental 2.34%

TransportationServices39.73%

General Government 15.22%

Consolidated Revenue By Type - 2016

Property Taxes 54.19%

Development Levies18.68%

Government Grants1.57%

User Charges 16.00%

Taxation from other Government andOther0.37%

Investment Income2.17% ContributedAssets3.83%

Other0.43%Penalties, Fines

andInterest2.75%

Financial Highlightsfor the year Ended December 31, 2016


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GFOA Award


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Consolidated Financial StatementsThe Corporation of the City of Brampton for the Fiscal Year Ended December 31, 2016


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Management’s Report

The integrity, relevance and comparability of data in the accompanying consolidatedfinancialstatementsaretheresponsibilityofmanagement.

Theconsolidatedfinancialstatementsarepreparedbymanagement,in accordance with generally accepted accounting principles established by the Public Sector Accounting Board (PSAB) of the Canadian Institute of CharteredAccountants.Theynecessarilyincludesomeamountsthatare basedonthebestestimatesandjudgmentsofmanagement.Financialdata elsewhereinthereportisconsistentwiththatinthefinancialstatements.

To assist in its responsibility, management maintains accounting, budget and other controls to provide reasonable assurance that transactions are appropriately authorized, that assets are properly accounted for and safeguarded,andthatfinancialrecordsarereliableforpreparationof financialstatements.

CityCouncilfulfilsitsresponsibilityforfinancialreportingthroughTheCity CouncilanditsAuditCommittee.TheCityCouncilconsistsoftheMayorand tenCouncillors.TheAuditCommitteeconsistsoffiveCouncillors.

KPMGLLP, Chartered Accountants, have been appointed by City Council toexpressanopiniononTheCity’sconsolidatedfinancialstatements. Theirreportfollows.

Harry Schlange David Sutton ChiefAdministrativeOfficer Treasurer

Brampton, Canada May 24, 2017

Responsibility for Financial Reporting


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Auditors’ Report


15Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

2016 2015

FINANCIAL ASSETS

Cash and short-term investments (Note 3) $ 425,801 $ 513,235

Taxes receivable 41,257 44,289

User charges receivable 3,725 3,419

Accounts receivable 29,101 35,430

Long-term investments (Note 3) 538,644 456,143

Other assets (Note 4) 8,361 8,344

Total financial assets 1,046,889 1,060,860

FINANCIAL LIABILITIES

Accounts payable and accrued liabilities 148,448 127,453

Capital lease obligation (Note 5) 90,165 91,619

Deferred revenue - general (Note 6 (a)) 3,744 3,339

Deferred revenue - obligatory reserve funds (Note 6 (b)) 323,282 316,710

Employeebenefitsandotherliabilities(Note7) 72,837 68,363

Total financial liabilities 638,476 607,484

Net Financial Assets 408,413 453,376

NON-FINANCIAL ASSETS

Tangible capital assets (Note 15) 3,598,234 3,508,415

Inventory and prepaids 6,071 5,395

Total non-financial assets 3,604,305 3,513,810

Guarantee (Note 4)

Contingencies (Note 13)

Commitments (Note 16)

Accumulated surplus (Note 9) $ 4,012,718 $ 3,967,186

Consolidated Statement of Financial Positionas at December 31, 2016

(All dollar amounts in $000)


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2016Budget (notes 1 (n) and 17)

2016 2015

REVENUES

Property taxation (Note 10) $ 419,905 $ 422,459 $ 393,608

Taxation from other governments 2,794 2,903 2,874

User charges 124,031 124,722 114,620

Government grants 1,939 12,252 13,468

Development levies earned 167,810 145,597 182,628

and other restricted capital contributions

Investment income 6,717 7,641 9,955

Interest earned on reserves 9,602 9,286 9,728

Penalties,finesandinterest 21,544 21,474 21,688

Developer contributed tangible capital assets (Note 15 (b)) 78,913 29,856 76,271

Other 4,354 3,363 5,792

Total revenues 837,609 779,553 830,632

EXPENSES

General government 108,947 111,689 60,798

Protection to persons and property 102,885 100,510 100,656

Transportation services 291,839 291,662 272,824

Environmental services 16,642 17,141 20,181

Health services (cemeteries) 707 759 840

Social and family services 3,783 3,879 2,832

Recreation and cultural services 174,956 179,336 166,159

Planning and development services 35,157 29,045 27,423

Total expenses 734,916 734,021 651,713

Annual Surplus $ 102,693 $ 45,532 $ 178,919

Accumulated surplus, beginning of year 3,967,186 3,788,267

Accumulated surplus, end of year (Note 9) $ 4,012,718 $ 3,967,186

Theaccompanyingnotesareanintegralpartoftheseconsolidatedfinancialstatements.

Consolidated Statement of Operations and Accumulated Surplusfor the year ended December 31, 2016 (All dollar amounts in $000)


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2016 Budget (notes 1 (n) and 17) 2016 2015

ANNUAL SURPLUS $ 102,693 $ 45,532 $ 178,919

Acquisition of tangible capital assets - (216,140) (248,028)

Amortization of tangible capital assets 124,670 125,971 119,939

Net book value of disposed tangible capital assets - 350 261

Acquisition of inventory and prepaids - (8,438) (7,060)

Use of inventory and prepaids - 7,762 7,232

CHANGE IN NET FINANCIAL ASSETS 227,363 (44,963) 51,263

NET FINANCIAL ASSETS, BEGINNING OF YEAR 453,376 453,376 402,113

NET FINANCIAL ASSETS, END OF YEAR $ 680,739 $ 408,413 $ 453,376


Consolidated Statement of Change in Net Financial Assets

for the year ended December 31, 2016 (All dollar amounts in $000)


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2016 2015

OPERATING ACTIVITIES

Cash provided by (used in):

Annual surplus $ 45,532 $ 178,919

Change in non-cash assets and liabilities:

Taxes receivable 3,032 8,681

User charges receivable (306) (602)

Accounts receivable and other assets 6,312 12,877

Accounts payable and accrued liabilities 20,995 2,368

Deferred revenue - general 405 64

Deferred revenue - obligatory reserve fund 6,572 10,260

Employeebenefitsandotherliabilities 4,474 4,081

Inventory and prepaids (676) 172

40,808 37,901

Items not involving cash:

Amortization of tangible capital assets 125,971 119,939

Loss on disposal of tangible capital assets 350 261

Developer contributed tangible capital assets (29,856) (76,271)

NET CHANGE IN CASH FROM OPERATIONS 182,805 260,749

FINANCING ACTIVITIES

Repayment of capital lease obligation (1,454) (1,348)

CAPITAL ACTIVITIES

Acquisition of tangible capital assets (186,284) (171,757)

INVESTING ACTIVITIES

Decrease in long-term investments (82,501) (52,028)

(270,239) (225,133)

INCREASE IN CASH AND SHORT-TERM INVESTMENTS (87,434) 35,616

Cash and short-term investments, beginning of year 513,235 477,619

CASH AND SHORT-TERM INVESTMENTS, END OF YEAR $ 425,801 $ 513,235


Consolidated Statement of Cash Flowsfor the year ended December 31, 2016 (All dollar amounts in $000)


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The Corporation of the City of Brampton (the “City”) is a municipalityintheProvinceofOntario,Canada.Itconductsits operations guided by the provisions of provincial statutes such as the Municipal Act, 2001, Municipal Affairs Act, DevelopmentChargesActandrelatedlegislation.

1. Significant accounting policies:

TheconsolidatedfinancialstatementsoftheCityare prepared by management in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada(“CPACanada”).Significantaspectsoftheaccountingpolicies adopted by the City are as follows:

a) Reporting entity: Theconsolidatedfinancialstatementsreflecttheassets, liabilities, revenues, expenses and accumulated surplus of thereportingentity.Thereportingentityiscomprisingall organizations, committees and local boards accountable for theadministrationoftheirfinancialaffairsandresourcesto theCityandwhichareownedorcontrolledbytheCity. Theseconsolidatedfinancialstatementsinclude:

• Brampton Public Library Board • Downtown Brampton Business Improvement Area

Interdepartmental and inter-organizational transactions and balancesbetweentheseorganizationsareeliminated.

b) Non-consolidated entities: The following Regional Municipality and local boards are not consolidated and should be contacted directly if examination oftheirannualauditedfinancialstatementsisdesired:

• The Regional Municipality of Peel • The Peel District School Board • The DufferinPeel Catholic District School Board • Conseil Scolaire de District du Centre-Sud Ouest • Conseil Scolaire de District Catholique Centre-Sud

Trust funds and their related operations administered by theCityarenotincludedintheseconsolidatedfinancial statements but are reported separately on the Trust Funds FinancialStatements.

c) Accounting for Region and School Board transactions: The taxation, other revenues, expenses, assets and liabilities with respect to the operations of The Regional Municipality of Peel (“Region of Peel”) and the school boards are not

reflectedintheaccumulatedsurplusoftheseconsolidatedfinancialstatements.

d) Basis of accounting: TheCityfollowstheaccrualmethodofaccounting.Undertheaccrual method of accounting, revenues are recognized in the period in which the transactions or events that gave rise totherevenuesoccurred.Expensesarethecostofgoodsorservices acquired in the period whether or not payment has beenmadeorinvoicesreceived.

e) Investments: Cash and short-term investments include short-term highly liquidinvestmentswithtermstomaturityof90daysorless.Investments consist of bonds and debentures and are recordedatamortizedcost.Discountsandpremiumsarisingon the purchase of these investments are amortized over the termoftheinvestments.Whentherehasbeenalossofvaluethat is other than a temporary decline in value, the respective investmentiswrittendowntorecognizetheloss.

f) Non-financial assets: Non-financialassetsincludetangiblecapitalassets,inventoryandprepaids.Theyarenotavailabletodischargeexisting liabilitiesandareheldforuseintheprovisionofservices.

g) Tangible capital assets: Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction,developmentorbettermentoftheasset. The cost, less residual value, of the tangible capital assets, are amortized on a straight line basis over their estimated useful lives as follows:

Asset Useful Life - Years Land Unlimited Buildings and building improvements 10 - 40 (asset under capital lease) Furniture, computer and 2 - 20 officeequipment Infrastructure 10 - 40 Land improvements 10 - 30 Vehicles and machinery 7 - 15

Annual amortization is charged in the year of acquisition and intheyearofdisposal.Assetsunderconstructionarenot amortizeduntiltheassetisavailableforproductiveuse.

Notes to Consolidated Financial Statements

Year ended December 31, 2016 (All dollar amounts are in 000s)


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(i) Contributions of tangible capital assets Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded asrevenue.

(ii) Works of art and cultural and historic assets Works of art and cultural and historic assets are not recorded asassetsintheseconsolidatedfinancialstatements.

(iii) Interest capitalization The City does not capitalize interest costs associated with the acquisitionorconstructionofatangiblecapitalasset.

(iv) Leased tangible capital assets Leaseswhichtransfersubstantiallyallofthebenefitsandrisks incidental to ownership of property are accounted for as leasedtangiblecapitalassets.Allotherleasesareaccountedfor as operating leases and the related payments are charged toexpensesasincurred.

(v) Tangible capital assets disclosed at nominal values Where an estimate of fair value could not be made, the tangible capital asset was recognized at a nominal value.Landistheonlycategorywherenominalvalues wereassigned.

h) Government grants: Government grants are recognized in the consolidated financialstatementsasrevenuesintheperiodinwhicheventsgiving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, and reasonableestimatesoftheamountscanbemade.

i) Deferred revenue - general: Deferred revenue represent user charges and fees which have been collected but for which the related services have yet to beperformed.Theseamountswillberecognizedasrevenuesinthefiscalperiodtheservicesareperformed.

j) Deferred revenue – obligatory reserve funds: The City receives gas taxes and transfer payments from other levels of government and development charges under the authorityofProvincialLegislationandCityBy-Laws.Thesefunds by their nature are restricted in their use and until applied to applicable capital works are recorded as deferred revenue.Amountsappliedtoqualifyingcapitalprojectsarerecordedasrevenueinthefiscalperiodtheyareexpended.

k) Taxation and related revenues: Taxation revenues are recorded at the time tax billings are issued.Additionalpropertytaxrevenuecanbeadded

throughout the year, related to new properties that become occupied, or that become subject to property tax, after the returnoftheannualassessmentrollusedforbillingpurposes.The City may receive supplementary assessment rolls over the course of the year from Municipal Property Assessment Corporation (“MPAC”), identifying new or omitted assess-ments.Propertytaxesforthesesupplementaryand/or omitted amounts are then billed according to the approvedtaxrateforthepropertyclass.

l) Investment income: Investment income earned on available surplus funds is reportedasrevenueintheperiodearned.Investmentincomeearned on development charges and parkland obligatory reserve funds is added to the fund balance and forms part ofrespectivedeferredrevenuebalances.

m) Pensions and employee benefits: The City accounts for its participation in the Ontario Municipal Employee Retirement Fund (“OMERS”), a multi-employerpublicsectorpensionfund,asadefinedcontributionplan.Vacationentitlementsareaccruedforasentitlementsareearned.Sickleavebenefitsareaccruedwhere they are vested and subject to payout when an employeeleavestheCity’semployment.

Otherpost-employmentbenefitsandcompensatedabsencesareaccruedinaccordancewiththeprojectedbenefitmethodprorated on service and management’s best estimate of salaryescalationandretirementagesofemployees.Actuarial valuations, where necessary for accounting purposes, are performedtriennially.Thediscountrateusedtodeterminetheaccruedbenefitobligationwasdeterminedbyreference to market interest rates at the measurement date on high- qualitydebtinstrumentswithcashflowsthatmatchthe timingandamountofexpectedbenefitpayments.

Unamortized actuarial gains or losses are amortized on a straight-line basis over the expected average remaining servicelifeoftherelatedemployeegroups.Unamortizedactuarialgains/lossesforevent-triggeredliabilities,suchas those determined as claims related to Workplace Safety Insurance Board Act (“WSIB”) are amortized over the average expectedperiodduringwhichthebenefitswillbepaid.

Costs related to prior period employee services arising out of plan amendments are recognized in the period in which the planisamended.

Notes to Consolidated Financial StatementsYear ended December 31, 2016 (All dollar amounts are in 000s)


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n) Budget figures: The City budgets for the following items on the consolidated statement of operations: interest earned on reserves, developer contributed tangible capital assets and amortizationexpense.BramptonCityCouncilcompletesseparate budget reviews for its operating and capital projectbudgetseachyear.Bothbudgetsarereflectedin theconsolidatedstatementofoperations.

The operating budget is based on projected operating expensestobeincurredduringthecurrentyear.Budgets established for capital projects are set on a project-oriented basis, the costs of which may be carried out over one or morefiscalyears.

o) Use of estimates: Thepreparationoftheseconsolidatedfinancialstatementsrequiresmanagementtomakeestimatesandassumptions.This affects the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidatedfinancialstatementsandthereportedamounts ofrevenuesandexpensesduringtheyear.Significantestimates and assumptions include allowance for doubtful accounts for certain accounts receivable, carrying value of tangible capital assets, provisions accrued liabilities and obligationsrelatedtoemployeefuturebenefits.Actual resultscoulddifferfromtheseestimates.

2. Future Accounting Pronouncements:

These standards and amendments were not effective for the year ended December 31, 2016, and have therefore not been appliedinpreparingtheseconsolidatedfinancialstatements.Management is currently assessing the impact of the following accounting standards updates on the future consolidated financialstatements.

(i)PS3210,Assets,providesadefinitionofassetsandfurtherexpandsthatdefinitionasitrelatestocontrol.Thestandardalso includes some disclosure requirements related to economic resources that are not recorded as assets to provide the user with better information about the types of resources availabletothepublicsectorentity.ThisstandardiseffectiveforfiscalperiodsbeginningonorafterApril1,2017(theCity’s December31,2018year-end).

(ii)PS3320,ContingentAssets,definescontingentassetsand outlines two basic characteristics of contingent assets: (a) an existing condition or situation that is unresolved at the financialstatementdate,(b)anexpectedfutureeventthatwillresolvetheuncertaintyastowhetheranassetexists.The

standardalsohasspecificdisclosurerequirementsfor contingentassetswhentheoccurrenceoftheconfirmingeventislikely.Thisstandardiseffectiveforfiscalperiodsbeginning on or after April 1, 2017 (the City’s December31,2018year-end).

(iii)PS3380,ContractualRights,definescontractualrightstofutureassetsandrevenue.Thestandardrequiresthatapublicsector entity’s contractual rights to certain types of revenue for a considerable period into the future or revenues that are abnormalinrelationtothefinancialpositionorusualbusinessoperations should be disclosed in notes or schedules to the financialstatementsandshouldincludedescriptionsabouttheirnatureandextentandtiming.ThisstandardiseffectiveforfiscalperiodsbeginningonorafterApril1,2017(the City’sDecember31,2018year-end).

(iv) PS 2200, Related Party Disclosures, establishes related partydisclosurerequirementsanddefinesrelatedparties. Thisstandardalsospecifiestheinformationrequiredto be disclosed including the type of transactions, amounts classifiedbyfinancialstatementcategory,thebasisof measurement, and the amounts of any outstanding items, anycontractualobligationsandanycontingentliabilities.Thestandard also requires disclosure of related party transactions thathaveoccurredwherenoamountshavebeenrecognized.ThisstandardiseffectiveforfiscalperiodsbeginningonorafterApril1,2017(theCity’sDecember31,2018year-end).

(v) PS 3430, Restructuring Transactions, requires that assets and liabilities in restructuring transactions to be measured at theircarryingamount.Italsoprescribesfinancialstatementpresentationanddisclosurerequirements.ThisstandardiseffectiveforfiscalperiodsbeginningonorafterApril1,2018(theCity’sDecember31,2019year-end).

(vi) PS 3420, Inter-Entity Transactions, relates to the measurement of related party transactions and includes a decisiontreetosupportthestandard.Transactionsare recordedatcarryingamountsotherthancertainexceptions.Thisstandardiseffectiveforfiscalperiodsbeginningonor afterApril1,2017(theCity’sDecember31,2018year-end).

(vii) PS 1201, Financial Statement Presentation, was issued in June,2011.Thisstandardrequiresentitiestopresentanewstatement of remeasurement gains and losses separate from the consolidated statement of operations and accumulated surplus.Thisnewstatementincludesunrealizedgainsand lossesarisingfromremeasurementoffinancialinstruments and items denominated in foreign currencies and any other




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comprehensive income that arises when a government includes the results of government business enterprises andpartnerships.Thissectioniseffectiveforfiscalyearsbeginning on or after April 1, 2019 and applies when PS 3450, Financial Instruments, and PS 2601, Foreign Currency Translation,areadopted.

(viii) PS 3450, Financial Instruments, establishes the standards onaccountingforandreportingalltypesoffinancial instrumentsincludingderivatives.Theeffectivedateofthis standard has recently been deferred and is now effective for fiscalperiodsbeginningonorafterApril1,2019(theCity’sDecember31,2020year-end).

(ix) PS 2601, Foreign Currency Translation, establishes the standards on accounting for and reporting transactions that aredenominatedinaforeigncurrency.Theeffectivedateofthis standard has been deferred and is now effective for fiscalperiodsbeginningonorafterApril1,2019(theCity’s December31,2020year-end).Earlieradoptionispermitted.A public sector entity adopting this standard must also adopt thenewfinancialinstrumentsstandard.

3. Cash and Investments:

Cash and short-term investments of $425,801 (2015 - $513,235) includes short-term investments of $33,102 (2015 - $2,000) with a market value $33,295 (2015 - $2,022) at the endoftheyear.

Long-term investments of $538,644 (2015 - $456,143) have a market value of $540,873 (2015 - $462,057), at the end of theyear.

4. Other Assets:

Included under other assets in the consolidated statement offinancialpositionis$7,984(2015-$7,984)consistingofaconstruction loan of $6,000 advanced by the City towards theconstructionof thePoweradeCentrewithaduedateofAugust31,2034andafurther$1,984representingadvances undertheLoanandPrioritiesAgreementestablishedin1998.

The City of Brampton is also the guarantor for the Powerade Centre Term Loan (previously a mortgage) held by the RoyalBankofCanada(RBC)expiringonMarch21,2017. Subsequent to year-end, the Term Loan, which has an amortization period ending in August 2034, was renegotiated witha5-yeartermendingonMarch21,2022. TheTermLoanhas an outstanding balance of $8,594 on December 31, 2016 (2015-$8,911).

5. Capital Lease Obligation:

In 2014, the City entered into a capital lease arrangement (the “agreement”) on a building in downtown Brampton as part of theSouthwestQuadrantRenewalPlan.

The agreement requires equal monthly lease payments over a periodof25yearsuntil2039.Attheexpiryoftheagreement,the legal title of the building will be transferred to the City

Annual lease payments under the agreement are as follows:

2017 $ 8,354 2018 8,354 2019 8,354 2020 8,354 2021 8,354 2022 and Thereafter 146,885

Total minimum lease payments $ 188,655

Less amount representing 98,490 implicitinterestat7.59%

Capital lease obligation $ 90,165

In 2016, the interest expense of $6,900 (2015 - $7,005) is reportedintheconsolidatedstatementofoperations.

6. (a) Deferred revenue – general:

Deferred revenue – general comprised program registration fees for parks and recreation programs, Transit advertising revenues applicable for the following year and unspent Provincialfundingforcapitalprojects.AsatDecember31,2016 the deferred revenue – general amounted to $3,744 (2015-$3,339).

(b) Deferred revenue – obligatory reserve funds: Under PSAB accounting principles, obligatory reserve funds aretobereportedasdeferredrevenue.ThisrequirementisinplaceasFederal/ProvinciallegislationandotherCityby-lawsand agreements may restrict how these funds may be used and under certain circumstances these funds may possibly berefunded.

As at December 31, 2016, obligatory reserve funds amounted to$323,282(2015-$316,710).Thisbalanceincludesunspentdevelopment charges, unspent gas tax receipts as well as unspentfundingforspecificinfrastructureprojectsreceivedfromfederalandprovincialgovernments.Alsoincludedinthisbalanceareunamortizeddowntownincentivecharges.



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TheDowntownIncentiveProgramwasinitiatedin2000withtheintentofpromotingnewdevelopmentinthedowntowncore.Aspartofthisprogram,developmentchargesarewaivedandamortizedbytheCityovera25yearperiod.AsofDecember31,2016,unamortizeddowntownincentivechargeswere$11,050(2015-$11,690).

Details of these deferred revenues are as follows:

Opening Amount Amount Other Closing received recognized as revenue

Developers $ 127,214 100,737 88,942 - $ 139,009 Federal gas tax 47,224 29,149 44,401 - 31,972 Provincial gas tax 2,885 10,467 10,099 - 3,253 Other 139,387 11,176 2,155 640 149,048

Total $ 316,710 151,529 145,597 640 $ 323,282

7. Employee benefits and other liabilities:

TheCityprovidescertainemployeebenefits,whichwillrequirefundinginfutureperiods.Underthesick-leavebenefitplan, unused sick leave can accumulate and employees may become entitled to cash payment when they leave the City’s employment.WithrespecttoresponsibilitiesunderprovisionsoftheWSIB,theCityhaselectedtobetreatedasaSchedule2employerandremitspaymentstotheWSIBasrequiredtofunddisabilitypayments.Anactuarialestimateoffutureliabilitieshasbeencompletedandformsthebasisfortheestimatedliabilityreportedintheseconsolidatedfinancialstatements.

Employeebenefitsandotherliabilitiesincludedintheconsolidatedfinancialstatementsaresummarizedbelow:

2016 2015

WSIB $ 10,114 $ 9,713 Vestedsickleavebenefits 17,145 16,293 Vacation pay 11,801 11,375 Non-pensionpostemploymentbenefits 20,721 19,102 Self insurance liability 4,826 4,630 Legal liability 8,230 7,250

Total $ 72,837 $ 68,363

AsatDecember31,2016,theCityhasallocatedreservesandreservefundsof$28,216(2015-$26,225)tofundtheseobligations. ThemostrecentfullactuarialvaluationwasperformedasatDecember31,2013.

The following table sets out the actuarial results for each of the plans as at December 31:

Item Non-Pension Vested WSIB 2016 2015 Post Employment Sick Leave Total Total Benefits Benefits

AccruedBenefitobligation(“ABO”), $22,307 $20,126 $8,929 $51,362 $49,457 beginning of year Add:Currentbenefitcosts 1,147 1,635 1,208 3,990 3,769 Add: Interest Cost 1,060 940 402 2,402 2,318 Less:CurrentBenefitPayments 1,141 2,323 1,214 4,678 4,182 ABO, end of the year $ 23,373 $ 20,378 $ 9,325 $ 53,076 $ 51,362 Unamortizedactuarialgain/(loss) (2,652) (3,233) 789 (5,096) (6,254) LiabilityforBenefits,endoftheyear $ 20,721 $ 17,145 $ 10,114 $ 47,980 $ 45,108




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The actuarial valuations of the plans were based upon a numberofassumptionsaboutfutureevents,whichreflectmanagement’sbestestimates.Thefollowingrepresentsthemoresignificantassumptionsmade:

Non-Pension Sick Leave WSIB

Expectedinflationrate 2.00% 2.00% 2.00% Expectedlevelof 3.00% 3.00% n/a salary increases Interestdiscountrate 4.75% 4.75% 4.50% Dentalpremiumrateincrease 4.00% n/a n/a Healthcarepremium 5.07% n/a 6.00% rates increase Expected average remaining 15 years 14 years 12 years service life

8. Pension agreements:

The City makes contributions to OMERS, which is a multi- employer plan, on behalf of all permanent, fulltime members ofitsstaff.Theplanisadefinedbenefitplan,whichspecifiestheamountoftheretirementbenefittobereceivedbytheemployees,basedonthelengthofserviceandratesofpay.TheCityaccountsforitsparticipationinOMERS,asadefinedcontributionplan.

The amount contributed to OMERS for 2016 was $25,332 (2015 - $24,408) for current service and is included as an expenseontheconsolidatedstatementofoperations. Employeecontributionstotaled$25,332(2015-$24,408).

The City is current with all payments to OMERS, therefore, thereisneitherasurplusnordeficitwiththepensionplan contributions.However,theOMERSpensionplanhada deficitatDecember31,2016of$5.7billionbasedon actuarialvaluationofplanassets.

9. Accumulated Surplus:

Accumulated surplus consists of individual fund surplus, including funds committed for capital projects, and reserves and reserve funds as follows:

2016 2015

Tangible capital assets $ 3,598,234 $ 3,508,415 Surplus funds from committed 90,140 169,834 capital projects and other

3,688,374 3,678,249 Reserves 76,323 67,676 Reserve Funds 248,021 221,261

Total $ 4,012,718 $ 3,967,186

10. Tax Revenues:

Property tax billings are prepared by the City based on the assessmentrollasdeliveredbyMPAC.MPACisanindependent body established by the Ontario Government’s Municipal PropertyAssessmentCorporationAct,1997.Aprovincewidere-assessment based on a January 1, 2008 market value was undertaken by MPAC for use in taxation years 2009 through 2012.Duringthisfouryearperiodanyassessmentincreasescompared to the previous 2005 assessment were phased-in equally.TheCityappliestheappropriatetaxratetothe assessmentintheproductionofthepropertytaxbills. However, the property tax revenue and tax receivables of the City are subject to measurement uncertainty as a number of appeals submitted by ratepayers for adjustments to assess-menthaveyettobeheardbytheAssessmentReviewBoard.An allowance has been recorded to provide for possible negativeadjustments.Anybillingadjustmentsmadenecessary by the determination of such changes will be recognized in thefiscalyeartheyaredeterminedandtheeffectsharedwithregionalgovernmentandschoolboardsasappropriate.

The Province enacted legislation together with regulations, the Fairness for Property Taxpayers Act, 1998 (Bill 79) in December 1998, which was replaced in 2000 by Bill 140, “ContinuedProtectionforPropertyTaxpayersAct”.Thesepieces of legislation limited assessment-related increases in property tax bills to 5 per cent annually for commercial, industrial and multi-residential classes of property until the affected properties were taxed at a level equivalent to taxes basedontheiractualcurrentassessedvalue.

Properties with decreases are liable to a “clawback” of someofthedecreasetofinancethe“capping”ofpropertieswithincreases.

Effective for the 2005 tax year, Bill 83 “Budget Measures Act” raises the upper limit of assessment-related increases in property tax bills from the 5 per cent maximum in Bill 79 and Bill 140 to 10 per cent annually for commercial, industrial andmulti-residentialpropertyclasses.

Further legislation was passed in 2009 creating additional optionsinthecappedpropertyclasses.Theseprovisionsallowed municipalities to remove any properties that in the prior taxation year reached CVA-level taxes from the capping program.Also,propertiesthatcrossoverfrombeingcappedproperties in the prior year to clawback properties in the current year or from being clawback properties in the prior year to capped properties in the current year are removed fromthecappingprogram.



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12. Trust funds:

Trust funds administered by the City amounted to $29,179 (2015-$29,748)arepresentedintheseparatefinancial statementsoftrustfundsbalancesandoperations.Assuch balancesareheldintrustbytheCityforthebenefitofothers,they are not presented as part of the City’s consolidated financialpositionoroperations.

The City administers the following trust funds:

• Cemeteries Care and Maintenance Trust • Developers’ Performance Deposits Trust • Developer Front End Financing Trust • Brampton Marketing Board, Greater Toronto Area and Greater Toronto Marketing Alliance • Brampton Sports Hall of Fame

13. Public liability insurance:

The City is self-insured for all lines of coverage including public liability, errors and omissions and Brampton Transit claims up to$500.Thisisforanynumberofclaimsarisingoutofasingleoccurrence.Outsidecoverageisinplaceforclaimsinexcessoftheselimits.

The City has created a reserve fund for self-insurance which as at December 31, 2016 had a $12,980 balance (2015 - $10,727) andisreportedontheconsolidatedstatementoffinancialposition.Claimssettledduringtheyearamountingto$3,757(2015 - $2,864) have been provided for from the reserve fund, and are accordingly reported as expenses on the consolidated statementofoperations.

In the normal course of its operations, the City is subject to variouslitigationandclaims.Wheremanagementhasas-

sessed the likelihood of the success of the claim as more likely than not and where a reasonable estimate as to the exposure can be made, an accrual has been recorded in these consolidatedfinancialstatements.Insomeinstances,theultimate outcome of these claims cannot be determined at thistime.However,theCity’smanagementbelievesthattheultimate disposition of these matters will not have a material adverseeffectonitsconsolidatedfinancialposition.

14. Provincial Offences Administration:

The Provincial Offences Act (“POA”) is a procedural law for administering and prosecuting provincial offences, including thosecommittedundertheHighwayTrafficAct,CompulsoryAutomobile Insurance Act, Trespass to Property Act, Liquor LicenceAct,MunicipalBy-lawsandminorfederaloffences. The administration of POA was downloaded to the City from theOntarioMinistryofAttorneyGeneralinJune1999.

The revenues of the combined operations of the Court House and City Hall and revenues collected on behalf of the City at other POA court sites in the Province of Ontario consist offinesleviedunderPartsIandIIIforPOAchargesandamountedto$7,890fortheyearendedDecember31,2016.(2015-$8,218).

The operating costs for the administration of the POA for the year ended December 31, 2016 amounted to $6,055 (2015 - $5,557), resulting in a net contribution of $1,835 (2015-$2,661)exclusiveofcapitalassetadditions.

The City constructed the POA Court-Hearing Facility, a permanent facility to accommodate the POA court operation (including courtrooms and accessory uses, an administrationofficeandrelatedrequirements,on-siteoffice



11. Expenses by object:

The following is a summary of the expenses reported on the consolidated statement of operations by object:

2016 Budget 2016 2015

Salaries,wagesandfringebenefits $373,640 $379,483 $345,602 Materials and supplies 74,174 73,531 69,802 Contracted services 105,585 98,931 98,350 Rentsandfinancialexpenses 16,487 15,370 16,832 Government transfers 40,360 40,385 927 Amortization 124,670 125,971 119,939 Other - 350 261

Total expenses $ 734,916 $ 734,021 $ 651,713


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space for prosecutors, a police bureau and accessory uses) and hearing rooms, which can be used for Ontario Municipal Board andAssessmentReviewBoardhearingsonaregularbasis.ThePOACourt-HearingFacilitybecameoperationalinAugust2004.Thetotalcostofdesignandconstructionincludingacquisitionoflandamountedto$10.7million.FundingforthePOACourt-HearingFacilityhasbeenprovidedfromtax-basedreserves.

15. Tangible capital assets:

TheCityhasidentifiedsixmajorassetcategories:Buildingsandbuildingimprovements;Furniture,Computerandoffice equipment;Infrastructure;Land;Landimprovements;VehiclesandmachineryandLeasedbuilding.

December 31, December 31, Cost 2015 Additions Disposals Transfers 2016

Land $ 1,628,129 $ 2,646 $ - $ - $ 1,630,775 Asset under capital lease 93,500 - - - 93,500 Buildings and building improvements 625,084 32,375 - - 657,459 Furniture,computerandofficeequipment 104,997 13,184 (30,436) - 87,745 Infrastructure 1,889,885 71,888 - 1,961,773 Land improvements 80,032 8,550 (122) - 88,460 Vehicles and machinery 294,713 28,107 (8,741) - 314,079 Assets under construction 105,894 184,192 - (124,802) 165,284

Total $ 4,822,234 $ 340,942 $ (39,299) $ (124,802) $ 4,999,075

Accumulated December 31, Amortization December 31, amortization 2015 Disposals expense 2016

Land $ - $ - $ - $ - Asset under capital lease 5,298 - 3,740 9,038 Buildings and building improvements 228,945 - 25,277 254,222 Furniture,computerandofficeequipment 63,306 (30,259) 13,910 46,957 Infrastructure 829,015 - 56,460 885,475 Land improvements 32,049 (40) 4,172 36,181 Vehicles and machinery 155,206 (8,650) 22,412 168,968

Total $ 1,313,819 $ (38,949) $ 125,971 $ 1,400,841



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Net book value December 31, 2015 December 31, 2016

Land $ 1,628,129 $ 1,630,775 Asset under capital lease 88,202 84,462 Buildings and building improvements 396,139 403,237 Furniture, computer and officeequipment 41,691 40,789 Infrastructure 1,060,870 1,076,300 Land improvements 47,983 52,279 Vehicles and machinery 139,507 145,111 Assets under construction 105,894 165,284

Total $ 3,508,415 $ 3,598,234

a) Assets under construction Assets under construction having a value of $165,284 (2015 -$105,894)havenotbeenamortized.Amortizationoftheseassetswillcommencewhentheassetsareputintoservice.

b) Contributed tangible capital assets Contributed capital assets have been recognized at fair marketvalueatthedateofcontribution.Contributedcapitalassets are comprised of infrastructure assets acquired throughsubdivisionassumptions.Thevalueofcontributedassetsreceivedduringtheyearis$29,856(2015-$76,271).

16. Commitments: The City leases facilities and equipment under operating leasesexpiringbeyond2022.Inaddition,2018amount includes $20,000 grant for the local share for construction of new Peel Memorial Centre for Integrated Health and Wellness.Theminimumamountspayableunderthese arrangements are as follows:

2017 $ 2,274 2018 21,674 2019 1,441 2020 1,058 2021 979 2022 and thereafter 17,763

$ 45,189

Excluded from these amounts is the capital lease obligation outlinedinNote5.

17. Budget Data:

Budgetdatapresentedintheseconsolidatedfinancial statements are based upon the 2015 operating and capital budgets as approved by Council and adopted by the City at theDecember9,2015meeting.Adjustmentstobudgeted

values were required to provide comparative budget values basedonthecomponentsoffullaccrualbasisofaccounting.The chart below reconciles the approved operating budget withthebudgetfigurespresentedintheseconsolidated financialstatements.

Revenue:

Approved operating budget $ 647,054

Less: Contributions from reserve funds 67,624 Add: Other 488 Add: Development levies earned 167,810 and other restricted capital contributions Add: Project budget for grants and subsidies 1,366 Add: Interest earned on reserves 9,602 Add: Developer contributed assets 78,913

Total reported on Consolidated Financial Statements $ 837,609

Expenses:

Approved operating budget $ 647,054

Less: Contributions to reserve funds 74,475 Add: Other 4,533 Add: Operating projects budget 33,134 Add: Amortization 124,670

Total reported on Consolidated Financial Statements $ 734,916

18. Segmented Information

The City is a multifaceted municipal government that delivers a wide range of services that enhance quality of life to its citizens.ForadditionalinformationseetheConsolidatedScheduleofSegmentDisclosure.

City services are provided by various divisions whose activities are organized in the following segments for management reporting purposes:

General government General Government is comprised of Mayor and Councilor’s aswellasCorporateManagementandSupportsections.

The departments within Corporate Management and Support sections are responsible for adopting bylaws and administrativepolicies;riskmanagement;providingeffectivefinancialreporting,planningandcontrols;developingandmaintainingflexiblecomputernetworksandresourcesto deliver information and telecommunications to City employees andthecitizensofBrampton;acquiring,managingand disposingCityassets;levyingandcollectingtaxes.




28

Protection to persons and property Protection Services delivers Fire Emergency Services, By-lawandEnforcementandPOAadministration.The mandateoftheFiredepartmentistoprovidefireprotectionand emergency response but also superior level of Fire PreventionandPublicEducation.By-lawandEnforcementassist in maintaining Brampton as a safe, healthy and attractive City by responding to public concerns, patrolling CitypropertyandenforcingtheCity’sby-laws.

POA’s mandate encompass the administration and prosecution of provincial offences, including those committedundertheHighwayTrafficAct,CompulsoryAutomobile Insurance Act, Trespass to Property Act, Liquor LicenceAct,MunicipalBy-lawsandminorfederaloffences.

Transportation services The Works department manages various infrastructure projects as part of a 10-year capital program to expand and improve the City’s road network and transportation infrastructure.Inaddition,majorfunctionsalsoinclude maintenance of road system (road resurfacing and snow clearing) and all associated infrastructure such as sidewalks,bridgesandcurbs.

BramptonTransitisresponsibleforprovidingefficientandeffectivelocalpublictransportationservice.

Environmental services Environmental Services are delivered by staff in the Works department.Primaryresponsibilityofthissectioniscatchbasinandstormsewermaintenance.Inaddition,the department performs watercourse maintenance in order to ensurepublicsafetyandenvironmentalcontrolsareinplace.Watercourse maintenance activities include controlling erosion, the removal of garbage and debris and responding to spills and illegal dumping to ensure water quality and propercleanup.

Health, social and family services Health, Social and Family services comprised cemetery operationsandassistancetoagedpersons.Assistance to aged persons includes senior’s education tax rebate, senior snow clearing subsidy as well as maintenance of seniorscentre.

Recreation and cultural services The Community Services department is responsible for the deliveryofParks,RecreationandCulturalservices.TheParksOperations division maintains all parks, boulevards, sports fields,trees,horticulturaldisplays,pathwaysandopenspace.

This division provides the residents of Brampton with safe, attractive, outdoor facilities delivered through a highly skilled andversatileworkforce.

The Recreation and Culture division is responsible for the delivery of all culture and recreation programs offered by the City and the day-to-day operation of all theatres and recreationbuildings.ThisdivisionprovidestheCity’sfront- line contact with the citizens of Brampton in Culture, Recreation Facilities and Programs providing many activities thatenhancetherichnessandqualityoflifeforresidents.

This section also contributes towards the information needs of the City’s citizens through the provision of library services bytheBramptonPublicLibraryBoard.

Planning and development services The Planning and Development Department responsibilities encompass planning, design and development approvals, management of building permit processes, long-range Bramptonofficialplanandgrowthmanagement.This department is also responsible for providing advice to CityCouncil,thepublic,andthedevelopment/building industry with respect to a broad range of land use planning, development applications, urban design, public buildings andopenspace/facilitydevelopmentissues,developmentengineering,andtransportationplanning.



29

General government

Protection to persons and

property

Transportation services

Environmental services

Health, social and family

services

Recreation and cultural

services

Planning and development

services

2016 Total

2015 Total

Revenues

Property taxation and taxation from other governments $ 424,977 - - - - - 385 $ 425,362 $ 396,482

User charges 9,965 19,866 61,150 - 947 28,418 4,376 124,722 114,620

Government grants - - 11,335 - 193 408 316 12,252 13,468

Development levies earned 47 4,557 112,340 - - 25,942 2,711 145,597 182,628

and other restricted capital contributions - - - - - - - - -

Investment income (including Reserves and Reserve Funds) 16,840 - - - - 82 5 16,927 19,683

Penalties,finesandinterest 9,661 11,285 - - - 528 - 21,474 21,688

Developer contributed tangible capital assets - - 29,856 - - - - 29,856 76,271

Other 309 21 2,508 - 17 402 106 3,363 5,792

Total Revenues 461,799 35,729 217,189 - 1,157 55,780 7,899 779,553 830,632

Expenses

Salaries,wagesandfringebenefits 70,820 80,910 125,562 981 2,313 79,057 19,840 379,483 345,602

Materials 15,658 2,626 37,777 36 550 15,162 1,722 73,531 69,802

Contracted services 24,556 3,356 40,623 1,594 229 25,635 2,938 98,931 98,350

Rentsandfinancialexpenses 13,327 132 1,386 - 7 431 87 15,370 16,832

Government transfers (22,189) 8,417 19,324 436 900 31,197 2,300 40,385 927

Amortization 9,517 5,069 66,979 14,094 640 27,514 2,158 125,971 119,939

Other - - 11 - - 339 - 350 261

Total Expenses 111,689 100,510 291,662 17,141 4,639 179,335 29,045 734,021 651,713

Annual surplus (deficit) $ 350,110 $ (64,781) $ (74,473) $ (17,141) $ (3,482) $ (123,555) $ (21,146) $ 45,532 $ 178,919


Consolidated Schedule of Segment Disclosurefor the year ended December 31, 2016

(All dollar amounts in $000)


30

Trust FundsFinancial Statements of the Corporation of the City of Brampton Year Ended December 31, 2016


31

Auditors’ Report


32

Cemeteries Care and Maintenance

Trust Funds

Developers' Performance

Deposits Trust

Developer Front End Financing Trust Fund

Brampton Sports Hall of Fame

Brampton Marketing Board, Greater Toronto Area and Greater Toronto

Marketing Alliance Trust Funds

2016 Total

2015 Total

Financial Assets and Liabilities

ASSETS

Cash 693,794 27,770,134 309,528 93,698 52,476 28,919,630 29,495,362

Accounts receivable 852 3,089 276 83 47 4,347 4,089

Subtotal 694,646 27,773,223 309,804 93,781 52,523 28,923,977 29,499,451

Investments, at cost (market - $250,561 2015 - $260,623):

Municipal Bonds 257,544 - - - - 257,544 257,544

Subtotal 257,544 - - - - 257,544 257,544

Total Financial Assets 952,190 27,773,223 309,804 93,781 52,523 29,181,521 29,756,995

LIABILITIES

Accounts payable - 2,196 - - - 2,196 2,196

Due to the City of Brampton 227 - - - - 227 6,823

Total Liabilities 227 2,196 - - - 2,423 9,019

Net financial resources 951,963 27,771,027 309,804 93,781 52,523 29,179,098 29,747,976

Fund balances 951,963 27,771,027 309,804 93,781 52,523 29,179,098 29,747,976

Seeaccompanyingnotestofinancialstatements.

Statement of Financial PositionTrust Funds - December 31, 2016, withcomparativefiguresfor2015


33

Cemeteries Care and Maintenance

Trust Funds

Developers' Performance

Deposits Trust

Developer Front End Financing Trust Fund

Brampton Sports Hall of Fame

Brampton Marketing Board, Greater Toronto Area and Greater Toronto

Marketing Alliance Trust Funds

2016 Total

2015 Total

Revenue

Monuments and markers deposits 2,400 - - - - 2,400 1,500

Perpetual care deposits 8,691 - - - - 8,691 6,869

Other deposits - Trusts - 68,000 - - - 68,000 127,226

Performance deposits received - 6,654,352 - - - 6,654,352 3,163,267

Subtotal 11,091 6,722,352 - - - 6,733,443 3,163,267

Interest Income 19,544 108,811 3,193 1,010 561 133,119 46,286

Total Revenues 30,635 6,831,163 3,193 1,010 561 6,866,562 3,345,148

Expenditures

Transfers to City Revenue Fund:

Maintenance Contribution 16,522 - - - - 16,522 15,961

ProfessionalServices/Audit - - - 3,837 - 3,837 5,785

OfficeExpenses - - - 1,591 - 1,591 -

ComputerSoftware/Maint - - - 1,995 - 1,995 -

Interest Transfer - 108,812 - - - 108,812 22,349

Administration Charges 3,022 - - - - 3,022 3,511

Subtotal 19,544 108,812 - 7,423 - 135,779 47,606

Return of performance deposits - 7,294,762 - - - 7,294,762 3,007,118

Payments on behalf of developers - 4,900 - - - 4,900 72,942

Total Expenditures 19,544 7,408,474 - 7,423 - 7,435,441 3,127,666

Excess of revenues over expenditures 11,091 (577,311) 3,193 (6,413) 561 (568,879) 217,482

Fund balances, beginning of year 940,872 28,348,338 306,611 100,194 51,962 29,747,977 29,530,494

Fund balances, end of year 951,963 27,771,027 309,804 93,781 52,523 29,179,098 29,747,976

Seeaccompanyingnotestofinancialstatements.

Statement of Financial Activities and Changes in Fund Balances

Trust Funds - December 31, 2016, withcomparativefiguresfor2015


34

The financial statements of The Corporation of the City of Brampton are prepared by management in accordance with generally accepted accounting principles for local governments as recommended by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada (“CPA Canada”). Significant aspects of the accounting policies adopted by the City are as follows:

1. Significant accounting policies:

Revenue recognition: (a) Receipts, other than interest and letters of credit receipts, arereportedonreceipt.Interestincomeandlettersofcreditreceiptsarerecordedontheaccrualbasisofaccounting.

(b) Returns of performance deposits are reported in the periods in which they are paid either directly by the Trust Funds or through The Corporation of the City of Brampton (the“City”)funds.Allotherexpensesarereportedontheaccrualbasisofaccounting.

The accrual basis of accounting recognizes expenses as they are incurred and measurable as a result of receipt of goods orservicesandthecreationofalegalobligationtopay.

(c) Investments, including any term deposits not available on demand, are reported at the lower of amortized cost andmarketvalue.

2. Cemeteries Care and Maintenance Trust Funds:

The City maintains several cemeteries, including the following which have Care and Maintenance Trust Funds which the City administers: Brampton, Page, Hilltop Gore, Shiloh, Alloa, Grahamsville,Zion,Mt.Olivet,St.John–Castlemore,St.John–Snelgrove,St.Mary–TullamoreandEventide.Interestincome attributable to each of the individual Trust Funds that is received during any particular year is transferred to the City Revenue Fund in that year to partially offset the maintenance cost for each cemetery to which the individual Trust Funds relate.Theoperationsandinvestmentsofthefundare undertaken by the City in accordance with the regulation ofthe“CemeteriesAct(Revised).”

3. Developers’ Performance Deposits Trust:

The Developers’ Performance Deposits Trust was established for the following purposes:

(a) To hold performance deposits made by individual parties totheCityasassurancethatspecificobligationsagreedupon

arefulfilled.Oncefulfilled,thedepositheldisreturnedtotherespectiveparty.

(b) When a party develops a property in the City, generally a letter of credit is obtained from the party’s bank, which provides a guarantee to the City that the contract will be completedasspecified.Otherwise,theCityisabletodrawupon the letter of credit and to deposit the funds in the Trust tobelaterusedtopayathirdpartytocompletethecontract.

4. Developer Front End Financing Trust Fund:

The Front End Financing Trust Fund was established in 1993 to receive contributions from developers for studies and constructionofserviceswhichnotonlybenefittheirparticulardevelopment,butwillalsoultimatelybenefitotherfuture development.TheFrontEndDevelopersprovidetheinitialfinancinginlieuoftheCityfortherequiredstudiesandcapitalworks and enter into agreements with the City to recover the costsassociatedwithotherbenefitinglandownersonabesteffortbasis.

5. Brampton Sports Hall of Fame:

TheBramptonSportsHallofFame(the“BSHF”)isanon-profitorganization that was founded to recognize and honour the history of sport in the City of Brampton and in particular those persons who have made outstanding contributions and achievements in the development of sport within the community.TheBSHFwillcollect,preserve,research,exhibitand promote all those objects, images and histories which are determinedtobesignificanttothedevelopmentofsportin theCityofBrampton.

6. Brampton Marketing Board, Greater Toronto Area and Greater Toronto Marketing Alliance:

The Brampton Marketing Board (the “BMB”), the Greater Toronto Area (the “GTA”) and the Greater Toronto Marketing Alliance (the “GTMA”) Trust Funds were established to hold contributions made from the development and business community.TheTrustFundswereformedaspartnershipsbetweentheBMB,theGTAandtheGTMA.Theirmandateisto attain corporate and municipal sponsorship of marketing initiativesfortheCity,theGTAandtheGTMA.

Notes to the Financial StatementsTrust Funds - Year ended December 31, 2016


35

Statistical InformationYear Ended December 31, 2016


36

2016 2015 2014 2013 2012

Population 593,638 580,600 571,700 557,800 540,145

Households 168,120 164,680 160,710 156,403 152,837

Areas in hectares 27,138 27,138 27,138 27,138 27,138

Full-time employees 2,933 2,872 2,872 2,819 2,658

Housing Starts 4,044 5,449 4,366 2,714 5,372

Building Permit Values 1,961,406 2,731,791 2,260,649 1,210,568 2,458,744

TAXABLE ASSESSMENT UPON WHICH TAX RATES WERE SET

Residential and farm $ 63,219,818 $ 61,363,309 $ 59,324,796 $ 57,602,952 $ 45,778,991

Commercial and industrial 13,639,517 13,498,302 13,035,512 12,870,830 11,442,405

Total $ 76,859,335 $ 74,861,611 $ 72,360,308 $ 70,473,782 $ 57,221,396

Total per capita 129,472 128,938 126,570 126,342 105,937

TAX RATES/MILL RATES (URBAN AREA)

Residential

City purposes 0.504409% 0.499812% 0.492340% 0.499550% 0.481609%

Region purposes 0.410616% 0.420315% 0.430992% 0.444781% 0.459138%

School board purposes 0.188000% 0.195000% 0.203000% 0.212000% 0.221000%

Total 1.103025% 1.115127% 1.126332% 1.156331% 1.161747%

Commercial

City purposes 0.654269% 0.648306% 0.638614% 0.647966% 0.624695%

Region purposes 0.532610% 0.545191% 0.559040% 0.576926% 0.595548%


Total 2.244278% 2.262749% 2.304737% 2.372369% 2.397629%

Five Year Review Summary(Notsubjecttoaudit;alldollaramountsareinthousandsexceptpercapitafigures.Seeaccompanyingnotesandschedulestofinancialstatements.)


37

2016 2015 2014 2013 2012

Industrial

City purposes 0.741481% 0.734724% 0.723740% 0.734338% 0.707965%

Region purposes 0.603606% 0.617863% 0.633558% 0.653828% 0.674933%


Total 2.637962% 2.678430% 2.718446% 2.787422% 2.804715%

TAXES RECEIVABLE, END OF THE YEAR

Amount $ 46,567 $ 50,150 $ 57,768 $ 53,493 $ 51,818

Per capita $78 $86 $101 $96 $96

Percentage of years' levy 4.46% 5.05% 6.18% 5.97% 6.12%

NET LONG-TERM LIABILITIES, END OF YEAR

Amount $90,165 $91,619 $92,967 - -

Per Capita $152 $158 $163 - -

CHARGES FOR NET LONG-TERM LIABILITIES

Amount $6,900 $7,005 $2,948 - -

Per capita $12 $12 $5 - -

DEBT REPAYMENT LIMIT $ 132,609 $ 124,718 $ 101,068 $ 111,795 $ 102,527

(as determined by the Province of Ontario)

Five Year Review Summary(Notsubjecttoaudit;alldollaramountsareinthousands

exceptpercapitafigures.Seeaccompanyingnotes andschedulestofinancialstatements.)


38

2016 2015 2014 2013 2012

TAXES COLLECTED

City collection $ 425,337 $ 396,482 $ 362,325 $ 342,132 $ 308,949

Taxes Transferred to the Region 345,653 331,371 315,094 302,695 292,146

Taxes Transferred to the School Boards 274,257 266,015 257,647 250,592 246,041

Total $ 1,045,247 $ 993,868 $ 935,066 $ 895,419 $ 847,136

TAX LEVIES

City purposes $ 422,704 $ 393,851 $ 359,899 $ 339,723 $ 305,844

Region purposes 343,919 331,138 314,854 302,443 291,442

School board purposes 272,796 265,524 257,647 250,592 246,042

Total $ 1,039,419 $ 990,513 $ 932,400 $ 892,758 $ 843,328

TRUST FUNDS BALANCE - End of year $ 29,179 $ 29,748 $ 29,530 $ 29,979 $ 31,974

CONTRIBUTION FROM DEVELOPERS AND OTHER OBLIGATORY RESERVES

Development charges $ 100,737 $ 136,071 $ 119,859 $ 81,551 $ 157,824

Gas tax - Province 10,467 10,047 11,837 8,710 8,144

Gas tax - Federal 29,149 27,761 28,117 24,352 24,352

Other obligatory reserves 11,176 18,369 13,772 25,021 19,700

Total $ 151,529 $ 192,248 $ 173,585 $ 139,634 $ 210,020

DEFERRED REVENUE - OBLIGATORY RESERVE FUNDS

Development charges $ 139,009 $ 127,214 $ 88,190 $ 60,718 $ 59,885

Gas tax - Province 3,253 2,885 3,572 1,559 1,110

Gas tax - Federal 31,972 47,224 56,674 31,227 22,532

Other obligatory reserves 149,048 139,387 158,014 136,064 111,414

Total $ 323,282 $ 316,710 $ 306,450 $ 229,568 $ 194,941

Five Year Review Summary(Notsubjecttoaudit;alldollaramountsareinthousands exceptpercapitafigures.Seeaccompanyingnotes andschedulestofinancialstatements.)


39

2016 2015 2014 2013 2012

CONSOLIDATED REVENUES BY SOURCE

Property taxation $ 422,459 $ 393,608 $ 359,644 $ 339,523 $ 305,644

Taxation from other governments 2,903 2,874 2,681 2,611 3,305

User charges 124,722 114,620 111,357 101,023 107,411

Government grants 12,252 13,468 26,509 7,130 24,315

Development levies earned 145,597 182,628 97,344 102,824 173,685

and other restricted capital contributions

Investment income 7,641 9,955 9,655 8,287 7,296

Penalties,finesandinterest 21,474 21,688 21,259 20,750 19,551

Interest earned on reserves 9,286 9,728 8,021 7,480 8,373

Developer contributed tangible capital assets 29,856 76,271 115,410 59,995 80,861

Other 3,363 5,792 6,712 4,405 2,553

Total $ 779,553 $ 830,632 $ 758,592 $ 654,028 $ 732,994

CONSOLIDATED EXPENSES BY FUNCTION

General government $102,172 $51,649 $52,003 $38,266 $40,511

Protection to persons and property 95,441 95,449 109,341 91,578 85,234

Transportation services 224,672 210,897 197,567 183,695 172,319

Environment services 3,047 6,792 3,288 2,173 2,500

Health services (cemeteries) 630 708 571 685 635

Social and family services 3,369 2,298 2,399 2,325 2,257

Recreation and cultural services 151,482 138,651 126,500 128,166 120,261

Planning and development 26,887 25,069 23,372 23,486 21,383

Amortization expense 125,971 119,939 118,399 105,189 101,373

Other 350 261 193 533 3,703

Total $ 734,021 $ 651,713 $ 633,633 $ 576,096 $ 550,176




40

2016 2015 2014 2013 2012

CONSOLIDATED EXPENSES BY OBJECT

Salaries,wagesandemployeebenefits $ 379,483 $ 345,602 $ 334,507 $ 313,854 $ 295,364

Long term debt payments 6,900 7,005 2,948

Goods and services 221,317 178,906 177,586 156,520 149,736

Amortization 125,971 119,939 118,399 105,189 101,373

Other 350 261 193 533 3,703

Total $ 734,021 $ 651,713 $ 633,633 $ 576,096 $ 550,176

ACCUMULATED SURPLUS, BEGINNING OF YEAR $3,967,186 $3,788,267 $3,663,308 $3,585,376 $3,402,558

ANNUAL SURPLUS 45,532 178,919 124,959 77,932 182,818

ACCUMULATED SURPLUS, END OF YEAR $ 4,012,718 $ 3,967,186 $ 3,788,267 $ 3,663,308 $ 3,585,376

TOTAL FINANCIAL ASSETS $1,046,889 $1,060,860 $994,172 $916,510 $829,980

TOTAL FINANCIAL LIABILITIES 638,476 607,484 592,059 416,271 349,672

NET FINANCIAL ASSETS $ 408,413 $ 453,376 $ 402,113 $ 500,239 $ 480,308

TANGIBLE CAPITAL ASSET NET BOOK VALUE

Land $ 1,630,775 $ 1,628,129 $ 1,608,632 $ 1,603,576 $ 1,595,418

Asset under capital lease 84,462 88,202 91,942 - -

Buildings and building improvements 403,237 396,139 395,169 384,284 369,384

Furniture,computerandofficeequipment 40,789 41,691 44,955 47,313 49,098

Infrastructure 1,076,300 1,060,870 986,006 868,442 812,788

Land improvements 52,279 47,983 48,039 49,162 44,833

Vehicles and machinery 145,111 139,507 132,904 125,689 134,772

Assets under construction 165,281 105,894 72,940 80,145 94,646

Total $ 3,598,234 $ 3,508,415 $ 3,380,587 $ 3,158,611 $ 3,100,939

Five Year Review Summary(Notsubjecttoaudit;alldollaramountsareinthousands exceptpercapitafigures.Seeaccompanyingnotes andschedulestofinancialstatements.)


41

2016 2015 2014 2013 2012

TANGIBLE CAPITAL ASSET COST

Assets - beginning of year $ 4,822,234 $ 4,655,337 $ 4,319,366 $ 4,162,546 $ 3,939,483

Additions 340,942 392,028 484,232 284,015 390,786

Disposals and transfers (164,101) (225,131) (148,261) (127,195) (167,723)

Assets - end of year $ 4,999,075 $ 4,822,234 $ 4,655,337 $ 4,319,366 $ 4,162,546

TANGIBLE CAPITAL ASSET AMORTIZATION

Accumulated amortization - beginning of year $ 1,313,819 $ 1,274,750 $ 1,160,755 $ 1,061,607 $ 971,018

Current year expense 125,971 119,939 118,399 105,189 101,371

Accumulated amortization on disposals (38,949) (80,870) (4,404) (6,041) (10,782)

Accumulated amortization - end of year $ 1,400,841 $ 1,313,819 $ 1,274,750 $ 1,160,755 $ 1,061,607

TANGIBLE CAPITAL ASSET NET BOOK VALUE $ 3,598,234 $ 3,508,415 $ 3,380,587 $ 3,158,611 $ 3,100,939




42

Rank Owner Name Assessment Value $

1 Morguard Corporation 576,171,000

2 Orlando Corporation 358,444,000

3 1388688 Ontario Limited 200,153,000

4 Riotrin Properties (Brampton) 175,853,000

5 Industrial 5000 Real Estate 163,641,000

6 CP REIT Ontario Properties Ltd 158,615,000

7 Chiefton Investments Limited 132,264,000

8 Investors Group Trust Co Ltd 130,370,000

9 Concert Real Estate Corporate 126,923,000

10 DaimlerChrysler Canada Inc 125,451,000

Top Ten - Assessment Total 2,147,885,000

%ofTotalIndustrialandCommercialAssessment 15.92%

%ofTotal 2.86%

Total Residential Assessment 61,543,869,896

Total Industrial and Commercial Assessment 13,493,609,464

Total 75,037,479,360

10 Largest Coporate Property Taxpayers in Brampton - 2016

Appendix 4-1 Appendix 3-1

Appendix 3 -

ActiveAssist

ActiveAssist is a fee subsidy program designed to help low-

income families and individuals in Brampton participate in

Recreation programs.

Assessment growth

The additional value of assessed properties (e.g. new

properties) added to a municipality in a given year.

Budget – balanced

Where revenues plus other funding sources equal expenditures.

Budget – base

The previous year’s approved budget before any budget

changes are reflected for current or future years.

Budget – capital

Forecasted funding and costs categorized by projects. Capital

budgets include the cost of purchase, construction, major repair,

replacement and renewal of assets. Capital budgets are long-

term and reflect an investment in the future of the city.

Budget – operating

Forecasted revenues and costs to run the city for a one-year

period (January-December). Operating budgets are for day-to-

day expenses to keep the city’s operations running. A

municipality’s operating budget must be balanced (i.e. projected

revenues must equal projected costs).

Budget deficit

Occurs when actual costs exceed actual revenues. In the

operating budget, the shortfall must be covered by a draw from

reserves in order to maintain a “balanced budget”. In the capital

budget, approval must come from Council to increase funding

for the project that has exceeded its budget.

Budget surplus

Occurs when actual revenues exceed actual costs. In the

operating budget, remaining funds must be placed into reserves

in order to maintain a “balanced budget”. In the capital budget,

remaining funds must be returned to the reserve(s) from which

funding was obtained for the project.

Cloud Computing

The practice of using a network of remote servers hosted on the

Internet to store, manage, and process data, rather than a local

server or a personal computer.

Credit rating

A value assigned to the city by a credit agency that reflects the

financial stability of the city’s finances.

Glossary


Appendix 3 -

Debenture

A loan secured to cover long-term investment. For Brampton,

debentures would be issued by the Region of Peel and are

restricted for use on capital projects.

Debt – DC-supported

External debt secured for capital projects that will ultimately be

paid back, including interest, through the collection of

development charges from builders.

Debt – external

Debt secured from sources outside the city (i.e. not from internal

city bank accounts).

Debt – internal

Debt used to fund capital projects secured from city reserves.

Loans are paid back, with interest at the prevailing rate(s), to the

reserve.

Debt – tax-supported

External debt secured for capital projects that will ultimately be

paid back, including interest, through property taxes.

Depreciation

The cost that reflects the loss in value of the city’s assets

annually (wear and tear).

Development Charges (DC)

Fees collected from developers, at the time a building permit is

issued, to pay for infrastructure such as roads, transit, water and

sewer infrastructure, community centres and fire and police

facilities in new developments.

Engagement

Engagement measures how much and how often others interact

with the City.

Feasibility Studies

An assessment of the practicality of a proposed plan or method.

Followers

Someone who subscribes to receive updates via Twitter,

Facebook etc.

Funding – one-time

Funding that is not ongoing and does not form part of the “base

budget”. Can be used to fund one time or emergency costs.

Cannot be used to fund ongoing expenses such as salaries.

Examples include annual surplus funds or draws from reserves.

Glossary


Appendix 3 -

Funding – ongoing

Funding that is sustainable through an ongoing source (e.g.

property taxes) and forms part of the “base budget”. Used to

fund ongoing expenses. Examples include property taxes,

recurring revenues and permanent transfers from other levels of

government.

Infrastructure deficit

The accumulated shortfall in savings for repair and replacement

of city assets.

Infrastructure levy

The portion of property taxes collected for the purpose of

funding repair and replacement of city assets.

Internet of Things (IoT)

The Internet of Things (IoT) refers to the growing network of

technology and devices that communicate over the internet.

Jumpstart

Canadian Tire Jumpstart Charities is a registered charity

dedicated to removing financial barriers so children across

Canada have the opportunity to get off the sidelines and get into

the game. Jumpstart’s core purpose is to enrich the lives of

children (from 4 to 18) in need through sports and physical

activity. They assist with the costs associated with registration,

equipment and/or transportation.

MPAC

Municipal Property Assessment Corporation. Its role is to

accurately assess and classify all properties in Ontario. The

assessments provided by MPAC are used to calculate the

property taxes payable by property owners.

Pain Points

A problem or need a business or company aims to solve.

Record of Site condition

A record of site condition (RSC) summarizes the

environmental condition of a property, as of a certification date,

based on the completion of one or more

environmental site assessments (ESAs) conducted or

supervised by a qualified person (QP) (some aspects of an ESA

must be conducted by the QP and may not be delegated).

Reserves

Earmarked revenue that is not tied to any specific asset and is

not required to be segregated. Reserves may be established

for a predetermined purpose (e.g. General Rate Stabilization

Reserve). Often referred to as “contingency” or “rainy day”

funds.

Glossary


Appendix 3 -

Reserve Funds

Revenues which are earmarked, segregated and restricted to

meet the purpose of the reserve fund. A reserve fund is

established based on a statutory requirement or a defined

financial commitment/liability payable in the future. There are

two types: obligatory and discretionary.

Reserve Funds - Obligatory

Funds segregated, as mandated by statute (e.g. Development

Charges) or as a result of a legal agreement (e.g. subdivision

agreement). To be used solely for the purpose prescribed for

them.

Reserve Funds - Discretionary

Reserve funds that are created by Council to earmark revenue

to finance a future expenditure (e.g. hospital, university, road

widening, facility construction).

Smart City

A smart city is an urban development vision to integrate

multiple information and communication technology (ICT)

and Internet of Things (IoT) solutions in a secure fashion to

manage a city’s assets – the city’s assets include, but are not

limited to, local departments' information

systems, schools, libraries, transportation

systems, hospitals, power plants, water supply networks, waste

management, law enforcement, and other community services.

Glossary


Appendix 3 -

ACC – Architectural Control Compliance

AIM – Accessible Interactive Maps

AMANDA – Building Permit Tracking System

AMPS – Administrative Monetary Penalty System

ATU – Amalgamated Transit Unit

AVL – Automated Vehicle Locator

BAS – Building Automation Systems

BCA – Building Condition Assessment

BEC – Brampton Entrepreneur Centre

BEMO – Brampton Emergency Management Office

BEPAC – Brampton Environmental Planning Advisory

Committee

BFES – Brampton Fire and Emergency Services

BFIP – Bicycle Facility Implementation Plan

BILD – Building Industry and Land Development Association

BL – Brampton Library

BPL – Brampton Public Library

BPFFA – Brampton Professional Fire Fighters Association

BRIMS – Brampton Records and Information Management

System

BRT – Bus Rapid Transit

CAMP – Corporate Asset Management Plan

CAO – Chief Administrative Officer

CAS – Council and Administrative Services

CCTV – Closed Circuit Television

CERV – Community Emergency Response Volunteer

CIL – Cash In Lieu

CIP – Community Improvement Plan

Class EA – Class Environmental Assessment

CLT - Corporate Leadership Team

COB – City of Brampton

CofA – Committee of Adjustment

COO – Chief Operating Officer

CPI – Consumer Price Index

CSO – Corporate Services Office

CSP – Customer Service Portal

Acronyms


Appendix 3 -

CUPE – Canadian Union of Public Employees

CVC – Credit Valley Conservation Authority

DC – Development Charge

DECRS – Downtown Etobicoke Creek Revitalization Study

DES – Data Encryption Security

DDGs – Development Design Guidelines

DPS – Development Permit System

DTIMS – Deighton Total Infrastructure Management System

EA – Environmental Assessment

EAB – Emerald Ash Borer

EMP – Environmental Master Plan

ERP – Enterprise Resource Planning

FCCC – Flower City Community Campus

FOI – Freedom of Information

FSEO – Festivals and Special Events Office

GEA – Ontario's Green Energy Act

GFOA – Government Finance Officers Association

GIS – Geographic Information System

GOC – Games Organizing Committee

GPS – Geographical Positioning System

GRS – General Rate Stabilization

GTA – Greater Toronto Area

GTHA – Greater Toronto and Hamilton Area

HLRT – Hurontario Light Rail Transit

HR – Human Resources

IAQ – Indoor Air Quality

ICI – Institutional Commercial Industrial

ILS – Integrated Library System

IMET – Inter Municipal Enforcement Team

IMS – Infrastructure Management System

IoT – Internet of Things

ISO – International Standards Organization

IT – Information Technology

ITS – Intelligent Transportation Systems

Acronyms


Appendix 3 -

ITSM – Information Technology Service Management

IWMS – Integrated Workplace Management System

JFCC – Joint Fire Communications Centre

KPIs – Key Performance Indicators

LCD – Liquid Crystal Display

LEED – Leadership in Energy and Environmental Design

LED – Light Emitting Diode

LID – Low Impact Design

LRAP – Licensing Renewal Analysis Project

LRAP – Licensing Review Automation Process

LRT – Light Rapid Transit

MAA – Municipal Access Agreement

MAG – Ministry of Attorney General

MAS – Management Advisory Services

MFIPPA – Municipal Freedom of Information and Protection of

Privacy Act

MMS – Minimum Maintenance Standards

MNR – Ministry of Natural Resources and Forestry

MPAC – Municipal Property Assessment Corporation

MPI – Municipal Price Index

MPMP – Municipal Performance Management Program

OBC – Ontario Building Code

OCA – Office of the Central Area

OCE – Ontario Centres of Excellence

OCE – Office of Community Engagement

OMB – Ontario Municipal Board

OP – Official Plan

OPA – Official Plan Amendment

OPPI – Ontario Professional Planners Institute

PLANTRAK – Development Tracking System

PM – Project Manager

POA – Provincial Offences Act

PSAB – Public Sector Accounting Board

ROP – Region of Peel

ROW – Right of Way

Acronyms


Appendix 3 -

SME – Small / Medium Enterprises

SOGR – State of Good Repair

SOP – Standard Operating Procedure

SP – Secondary Plan

SWM – Storm Water Management

TCA – Tangible Capital Asset Reporting

TDM – Travel Demand Management

TLMS – Talent Learning Management System

TMS – Talent Management System

ToR – Terms of Reference

TRCA – Toronto and Regional Conservation Authority

TSSA –Technical Standards & Safety Authority

TMP – Transportation Master Plan

WHO – World Health Organization

WSIB – Workplace Safety and insurance Board

Acronyms

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